USD/CAD Price Analysis: Corrects from three-month highs near 1.2850

USD/CAD faces rejection once again near 1.2850 amid firmer WTI prices.
The major has room to rise further amid a bullish breakout and firmer RSI.
The immediate downside could find some support at the 1.2790 price zone.

Dhwani Mehta FXStreet

USD/CAD is extending its corrective pullback from three-month highs of 1.2846, now attacking the 1.2800 level amid a rebound in oil prices.

The pair fails to benefit from the resurgent US dollar demand across the board, as WTI rebounds over 2% so far this Monday.

Meanwhile, investors move past the mixed US and Canadian employment data, as they await the Bank of Canada (BOC) rate decision due to be announced on Wednesday.

Looking at USD/CAD’s daily chart, the bears have fought back control, as the price now looks to test the critical trendline resistance now support at 1.2791.

Despite the pullback, the bullish potential remains intact after the pair witnessed an upside breakout from the three-month-long falling trendline support last Thursday.

The 14-day Relative Strength Index (RSI) is sitting just beneath the overbought territory, allowing more room for the upside.

Bulls will need to cross the multi-month highs to take on the September highs at 1.2896.

USD/CAD: Daily chart

On the downside, a firm break below the abovementioned strong support at 1.2791 could accentuate the correction towards Friday’s low of 1.2744.

The next bearish target is envisioned at 1.2700 if the selling pressure accelerates.

USD/CAD: Additional levels

USD/CAD

Overview
Today last price	1.2810
Today Daily Change	-0.0025
Today Daily Change %	-0.19
Today daily open	1.2837

Trends
Daily SMA20	1.2646
Daily SMA50	1.2539
Daily SMA100	1.2579
Daily SMA200	1.2476

Levels
Previous Daily High	1.2846
Previous Daily Low	1.2744
Previous Weekly High	1.2846
Previous Weekly Low	1.2713
Previous Monthly High	1.2837
Previous Monthly Low	1.2352
Daily Fibonacci 38.2%	1.2807
Daily Fibonacci 61.8%	1.2783
Daily Pivot Point S1	1.2772
Daily Pivot Point S2	1.2707
Daily Pivot Point S3	1.267
Daily Pivot Point R1	1.2874
Daily Pivot Point R2	1.2911
Daily Pivot Point R3	1.2976

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD sits at two-month lows near 0.6950 after Australian CPI data

AUD/USD is sitting at two-month lows near 0.6950 in the Asian session on Wednesday, as below-expectations August Australian underlying CPI data pours cold water on expectations for further RBA interest rate hikes. Chinese PMI data also fail to inspire the Australian Dollar, despite a pause in the US Dollar advance.

USD/JPY stays weak below 157.00 amid Japanese intervention risks

USD/JPY keeps losses below 157.00 in the Asian session on Wednesday, as hawkish BoJ expectations, along with intervention risks, underpin the Japanese Yen, countering dismal domestic factory output and retail sales data. Meanwhile, a broad US Dollar retreat also collaborates to the pair's downside.

Gold flat lines below $4,200 as traders await US PCE data for Fed rate cues

Gold extends its consolidative price move heading into the European session, trading below the $4,200 mark amid mixed fundamental cues. Falling US bond yields drag the US Dollar away from the two-month high, touched on Tuesday, and act as a tailwind for the commodity. However, hawkish US Federal Reserve expectations cap the upside as traders await important US macro data before placing fresh directional bets on the non-yielding bullion.

Aave Price consolidates below $161 as profit-taking emerges after 10% surge

Aave slips below $161 on Wednesday after surging more than 10% the previous day, with on-chain data suggesting increased profit-taking. Meanwhile, Aave founder Stani Kulechov is considering an AAVE token-burn mechanism under Aavenomics 3.0, adding a potential catalyst for AAVE.

Warning: The RBI's October rate hike may be too late as oil risks mount

The Indian Rupee (INR) is one of the worst-performing Asian currencies in 2026, down about 6.5% year-to-date against the US Dollar (USD) and trading near historic lows ahead of the October 5–7 Reserve Bank of India (RBI) meeting. Economists expect the RBI to raise its repo rate by 25 basis points (bps) next month and follow up with another increase in December to counter rising retail inflation.

Silver is more volatile than Gold ahead of PCE and NFP. This chart shows the positioning gap

The market’s attention is focused on American data this week, but there’s something only those with a trained eye may be looking at: Gold and Silver positioning gap. Financial markets are moving on fears, mostly related to persistently high energy prices driven by the Middle East war. Sure, the US Dollar (USD) is strong, but at what cost?